Consumer prices increased 3.9% last month from a year ago, the statistics agency reported on Friday. While the print eased back to within the Bangko Sentral ng Pilipinas’ 2%-4% goal for the first time since March 2022, the 2023 average of 6% missed the inflation target for a third straight year.

Rice inflation quickened for a second straight month to 19.6% from a year ago, the fastest pace since March 2009, according to the statistics agency. The government may further cut the tariff on rice imports to help cool prices, National Economic and Development Authority head Arsenio Balisacan said after the data.

“Looking ahead, the Monetary Board deems it necessary to keep monetary policy settings sufficiently tight until a sustained downtrend in inflation becomes evident,” the BSP said in a statement Friday, reiterating that it will take “appropriate action as needed to bring inflation back to the target.”

“The balance of risks to the inflation outlook continues to lean significantly toward the upside,” the central bank said, citing potential pressures from higher transport and power rates, oil and food prices.

Volatile costs of the staple grain along with other persistent price risks have kept BSP Governor Eli Remolona hawkish, repeatedly signaling that the key rate will remain at a 16-year high of 6.5% “for a while.” Last month, Remolona said he wants to see inflation comfortably within target before considering reversing some of the 450 basis points of hikes since May 2022.

The main stock index was down 0.2% while the peso was lower by 0.1% against the dollar at 10.02am local time.